Bayonne approves deal with Royal Caribbean to facilitate loans for expansion

Royal Caribbean's new Quantum of the Seas cruise ship. COURTESY OF ROYALCARIBBEAN.COM

The Bayonne City Council unanimously approved a request from Royal Caribbean Cruise Lines to provide "non-recourse financing" for the cruise company's plan to expand at Bayonne's Peninsula at Bayonne Harbor.

Bayonne spokesman Joe Ryan said the city would act as "conduit" for the project funds, allowing Royal Caribbean to take advantage of the city's favorable financing rates for the $50 million project that includes a new terminal and parking facility. The city council approved the request Wednesday night.

"(This deal) means we're not responsible for the debt," Ryan said. "So in this case the city is assisting with the application on behalf of Royal Caribbean, but we would not be responsible for handling the debt. Royal Caribbean is."

In addition, RCCL will pay Bayonne a $250,000 application fee and $50,000 annually to monitor the financing.

"This important project is a huge benefit for the Bayonne community," Bayonne Mayor Mark Smith said in a press release. "Our relationship with Royal Caribbean has been an excellent experience. This project will extend their commitment to our community for many decades into the future and will provide their customers with a state-of-the-art, comfortable and modern cruise facility at an easily accessible location."

Smith said Bayonne can expect to benefit from the cruise line's expansion, since it will create hundreds of building and construction trades jobs and cruise-related employment opportunities for area residents.

Officials estimate that the project should be completed some time next year, just in time to launch the "Quantum of the Seas" luxury liner.